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Short-Term Rental Regulations
in Panama City, FL

Last verified: March 2026 · Report an update

Zoning & Conditions

Short-term rentals are required to register as businesses and obtain a local business tax receipt. Applications are subject to interdepartmental review by Planning & Zoning, Fire, Code Enforcement, Environmental Compliance, and the Building Department to ensure compliance with city codes.

How to Obtain a Permit

1. Create a free online GovOS account to submit a local business tax receipt application. 2. Submit the application to Business Services for routing to Planning & Zoning, Fire, Code Enforcement, Environmental Compliance, and Building departments for approval. 3. Pay the required fees once approved.

Regulatory Updates — Panama City

Proposed and recent legislation

PassedApril 2023

Post-Hurricane Michael STR Licensing Requirements

Panama City updated its STR permitting to require proof of completed building permits for all properties rebuilt or substantially repaired after Hurricane Michael. The requirement applies to new license applications and renewals for affected properties.

PassedJuly 2023

Florida DBPR Licensing and Bay County Tax Compliance

All Panama City vacation rentals must hold a valid Florida DBPR vacation rental license and register with Bay County for tourist development tax collection. The DBPR's biennial inspection requirement applies regardless of post-storm status.

Official source
PassedJune 2023

City Business License Requirement

Panama City requires vacation rental operators within city limits to obtain a city business tax receipt in addition to the state DBPR license, providing a local registration layer separate from the state licensing system.

Official Resources

Official Panama City STR regulation source

Local Resources & Advocacy

Florida Vacation Rental Management Association (FVRMA)Statewide

Statewide trade group defending SB 280 preemption rights and providing compliance resources for Bay County vacation rental operators.

Bay County Chamber of CommerceLocal

Tracks local business and regulatory developments affecting Panama City tourism and vacation rental operators.

Vacation Rental Management Association (VRMA)National

National trade association providing regulatory monitoring and professional standards for vacation rental managers in the Florida Panhandle market.

Frequently Asked Questions

Are short-term rentals allowed in Panama City, FL?
Short-term rentals are required to register as businesses and obtain a local business tax receipt. Applications are subject to interdepartmental review by Planning & Zoning, Fire, Code Enforcement, Environmental Compliance, and the Building Department to ensure compliance with city codes.
Is a permit required to operate a short-term rental in Panama City?
Yes, a permit is required to operate a short-term rental in Panama City. 1. Create a free online GovOS account to submit a local business tax receipt application. 2. Submit the application to Business Services for routing to Planning & Zoning, Fire, Code Enforcement, Environmental Compliance, and Building departments for approval. 3. Pay the required fees once approved.
How do I get a short-term rental permit in Panama City?
1. Create a free online GovOS account to submit a local business tax receipt application. 2. Submit the application to Business Services for routing to Planning & Zoning, Fire, Code Enforcement, Environmental Compliance, and Building departments for approval. 3. Pay the required fees once approved.
What is the difference between Panama City and Panama City Beach for vacation rental purposes?
Panama City and Panama City Beach are separate municipalities in Bay County with different STR regulatory frameworks. Panama City Beach is a major beach resort city with a large, established vacation rental market and a tourism-first regulatory posture. Panama City is the county seat — an urban commercial city without a beachfront — with a smaller STR market driven by business travel, military-related stays, and some tourism overflow. Operators should confirm which city governs their property address.
How did Hurricane Michael affect the Panama City vacation rental market?
Hurricane Michael (Category 5, October 2018) caused severe damage throughout Bay County, including significant structural damage in Panama City. The recovery has been extensive and largely successful, with major rebuilding completed through 2022–2024. Operators with properties rebuilt after Michael must provide proof of completed building permits before STR licenses are issued or renewed.
What taxes apply to Panama City short-term rental income?
Operators collect Florida state sales tax (6%) and Bay County tourist development tax (5%), for a combined rate of approximately 11–12%. Airbnb and Vrbo collect and remit both state and Bay County taxes on behalf of hosts. Direct-booking operators must register with the Florida DOR and Bay County Tax Collector independently.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: March 2026 · Suggest a correction